Euro Parliament Approves Data Act That Requires Kill Switches On Smart Contracts

The European Union's Parliament has approved data sharing rules that would require kill switches to be put on smart contracts that involve anonymized data.

The newly approved EU Data Act was delivered to the Parliament by the European Commission, who said that its primary objectives were to “promote data-sharing and foster innovation in the digital economy.” The Act also aims to promote data portability, while requiring organizations to provide anonymized data to users or customers when it is requested, and thus prevent private companies or organizations from being able to pay for or be given access to private data.

The new legislation also sets out requirements for smart contracts used for the storage, sharing and access of confidential data, such as those used in the insurance and finance industries. This stipulation has sparked a heated debate within the cryptocurrency community, with some arguing that it could place restrictions on the use of smart contracts that contradicts the idea of decentralization.

In spite of this, proponents of the act have defended its provisions, pointing out that the aim of the requirement is to ensure greater transparency among users of smart contracts, as well as to promote the safekeeping and protection of data.

The act is seen as an important step towards advancing data privacy regulations in the EU, and while the act is still in its early stages, it should bring increased transparency to data sharing and usage in the region.

The new act is due to enter into force on 1 October 2021.

Summary:

The new EU Data Act approved by Parliament requires organizations to put kill switches on smart contracts used in the storage, sharing and access of confidential data. This has sparked debate within the crypto community due to its implications on decentralization, but proponents argue that it increases transparency and helps protect user data. The act will enter into force on 1 October 2021.

Categories : European Union